The Monetary Authority of Singapore (MAS) has announced a regulatory framework for single-currency stablecoins (SCS) regulated in the Asian country, according to an Aug. 15 statement.
The financial regulator stated that the regulations would apply to single-currency stablecoins (SCS) pegged to the Singapore dollar (S$) or any G10 currency whose circulation exceeds S$5 million. Some G10 currencies include the Euro, British Pound and US Dollar.
Ho Hern Shin, the deputy director of MAS, said the “regulatory framework aims to facilitate the use of stablecoins as a credible digital medium of exchange and as a bridge between the fiat and digital asset ecosystems.”
The MAS further wrote that:
“When properly regulated to maintain such value stability, stablecoins can serve as a trusted medium of exchange to support innovation, including the on-chain purchase and sale of digital assets.”
The new regulations follow Circle’s announcement that its subsidiary, Circle Singapore, has received a Major Payment Institution (MPI) license from the authorities. The license would enable the company to offer digital payment token services, cross-border money transfer services and domestic money transfer services.
Main requirements for registration
According to the MAS, stablecoin issuers must meet critical requirements to be recognized in the city-state. These requirements include ensuring the stability, capital, redemption capacity of the asset and taking appropriate disclosure measures.
MAS continued that only issuers whose stablecoins meet all of the framework’s requirements can apply for their assets to be recognized and labeled as “MAS-regulated stablecoins.”
Shin urged SCS issuers to prepare for compliance early if they want their stablecoins to be recognized as MAS regulated.
Meanwhile, the regulator sternly warned that issuers who fail to comply but misrepresent their tokens as compliant could be penalized and placed on MAS’s Investor Alert List.
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